The Bank of Thailand has extended its temporary relaxation of loan-to-value (LTV) mortgage rules until June 30, 2027, prolonging a policy designed to support a property sector still weighed down by weak demand and fragile economic conditions.

The measure keeps in place looser borrowing limits that allow banks greater flexibility in issuing home loans, including arrangements that can cover a larger share of property values than under standard lending rules.

The easing was originally introduced as a time-limited response to a prolonged slowdown in housing transactions, with policymakers seeking to reduce pressure from unsold inventory and stimulate mortgage lending.

Thailand’s property market has been under strain for an extended period, affected by high household debt, cautious bank lending standards, and uneven economic recovery.

Developers have repeatedly called for continued policy support, arguing that tighter credit conditions have constrained both buyers and project launches.

By extending the easing window, the central bank is signaling that it sees the sector’s recovery as slower and more uncertain than previously expected.

At the same time, policymakers have consistently framed the measure as temporary, aiming to balance short-term support for the housing market against concerns about financial stability and long-term lending risks.

What remains unclear is how quickly lower borrowing barriers will translate into stronger demand in a market still facing structural headwinds.